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EuroChem purchases controlling share in Brazilian distributor Fertilizantes Heringer

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EuroChem Group AG, the Russian global fertilizer producer, announced the signing by one of its subsidiaries of an agreement to purchase a controlling 51.48 percent share in Brazilian fertilizer distributor Fertilizantes Heringer S.A.

With a total of 14 storage, blending and distribution units in the southeast, midwest, south and northeast regions, Fertilizantes Heringer is considered a significant contributor to Brazilian agriculture as the country’s fourth-largest distributor in terms of installed capacity, at more than four million metric tonnes (MMT) per annum.

Charles Bendaña, EuroChem group global head of sales and distribution, said the acquisition will enable EuroChem to better serve the total market of Brazil while providing more outlets for its full product line of standard and premium fertilizers.

“It will also help us achieve higher efficiency in our shipping and logistics programs in order to provide reduced costs to our customers in Brazil, as well as increased netbacks to our global production facilities,” noted Bendaña. “Taken with our recent full acquisition of Fertilizantes Tocantins and the ongoing purchase of the Serra do Salitre phosphates project, this move will help anchor EuroChem as a leader both locally and abroad.”

The deal is valued at 554,562,780 Brazilian reais, subject to customary price adjustment arrangements, and has been submitted for approval to the Brazilian antitrust authority – the Administrative Council for Economic Defense (CADE).

Lieven Cooreman, EuroChem Fertilizantes Tocantins CEO and head of EuroChem’s commercial division in South America, noted: “With Heringer joining a South America distribution base that already includes EuroChem Fertilizantes Tocantins in Brazil and EuroChem Emerger Fertilizantes in Argentina, this deal, once approved, will cement our reputation as the crop nutrient supplier of choice across great swathes of the continent. This naturally gives our customers added confidence in our ability to cater to any crop anywhere, in a timely manner.”

In Q3, Heringer reported last 12-month sales of 1.5 MMT.

EuroChem concluded the acquisition of Fertilizantes Tocantins in August 2020. In August 2021, EuroChem entered into a deal to acquire Serra do Salitre, an upstream integrated phosphate project at an advanced stage in the state of Minas Gerais, which will add one MMT to EuroChem’s annual phosphate production capacity as it reaches full production capacity in 2024. Antitrust clearance has been obtained and closing is expected to take place shortly.

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